v3.26.1
Note 7 - Stock Compensation Plans
6 Months Ended
Jun. 30, 2026
Notes to Financial Statements  
Share-Based Payment Arrangement [Text Block]

Note 7. Stock Compensation Plans

 

Stock awards and restricted stock units (RSUs) are both issued under the Company's 2023 Stock Incentive Plan. Awards are made at the discretion of the Board of Directors and compensation cost equal to the fair value of the award is recognized over the vesting period. 

 

Stock Awards

 

Whenever the Company deems it appropriate to grant a stock award, the recipient receives a specified number of unrestricted shares of the Company's common stock. Stock awards may be made by the Company at its discretion without cash consideration and may be granted as settlement of a performance-based compensation award. 

 

There was no compensation expense related to stock awards for the six months ended June 30, 2026 and 2025.

 

Restricted Stock Units

 

RSUs are awards of units that correspond to a specified number of shares of the Company's common stock which the recipient receives according to a vesting plan and distribution schedule after achieving required performance milestones or upon remaining with the Company for a particular length of time. Each RSU that vests entitles the recipient to receive one share of common stock on a specified issuance date.

 

During the first quarter of 2026, 29,744 RSUs were granted to employees, with 5,084 units vesting on February 15, 2026, and 24,660 units subject to a five-year vesting schedule. The recipient does not have any stockholder rights, including voting, dividend, or liquidation rights, with respect to the shares underlying awarded RSUs until vesting has occurred and the recipient becomes the record holder of those shares. The unvested RSUs will vest on the established schedule if the employee remains employed by the Company on future vesting dates.

 

A summary of the activity for the Company’s RSUs for the period indicated is presented in the following table:

 

  

Six Months Ended

 
  

June 30, 2026

 
  

Shares

  

Weighted Average Grant Date Fair Value

 

Unvested, beginning of year

  72,399  $22.71 

Granted

  29,744   27.48 

Vested

  (20,312)  22.15 

Forfeited

  (1,000)  15.21 

Unvested, end of period

  80,831  $24.47 

 

The total unrecognized pre-tax compensation expense related to unvested RSU awards was $1.4 million on  June 30, 2026 and $1.4 million on  June 30, 2025. This expense is expected to be recognized through 2031. Compensation expense related to RSU awards recognized for the six months ended  June 30, 2026 and 2025 totaled $559 thousand and $445 thousand, respectively.